Top six employees of Nykaa set to make over ₹850 crore

Market


Six senior executives at Nykaa stand to make a total of more than 850 crore or $115 million through their shareholding and vested options as the company’s initial public offering (IPO) opens on 28 October.

The six executives head various divisions in the online beauty, wellness and fashion products seller.

Reena Chhabra, the chief executive officer of the company’s private label division FSN Brands, stands to make 250 crore with 2.1 million shares and 0.12 million employee stock options (ESOPs). Chhabra has been associated with FSN Brands since May 2016. The total remuneration paid to her in FY21 was 3.06 crore, according to the draft red herring prospectus (DRHP) filed by the company.

Potential windfall

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Potential windfall

Nihir Parikh, chief executive officer Nykaa, Man Business, one of the arms of Nykaa E-Retail, holds more than 2 million shares and 0.12 million Esops worth 245 crore. He joined the firm in 2015 and drew a salary of 2.83 crore in FY21.

Sanjay Suri, the chief technology officer of Nykaa E-Retail, has 1.8 million shares and 0.15 million Esops, together worth 220 crore. Suri, who joined the firm in 2016, was paid 2.39 crore in FY21.

Manoj Jaiswal, the chief supply chain officer, Nykaa E-Retail, holds shares and options worth 63 crore, while Arvind Agarwal, the chief financial officer of the firm, has shares and options worth 45 crore. Gopal Asthana, the chief business officer of Nykaa Fashion, has shares and options worth 29 crore.

Nykaa, operated by FSN E-Commerce Ventures Pvt. Ltd, aims to list at a little more than a $7 billion valuation later this week. This is a significant jump from its last private trade, which the company struck at a valuation of about 9,300 crore ($1.25 billion) in November 2020.

At the time, Fidelity Management and Research LLP acquired the company’s shares from some early investors, according to the red herring prospectus. At this valuation, the net worth of the promoters through their group entities Sanjay Nayar Family Trust, Falguni Nayar Family Trust, Anchit Nayar Family Trust and Adwaita Nayar Family Trust is $3.83 billion.

At the IPO valuation, Hero Group founder Sunil Kant Munjal’s 2016 investment in the firm jumps 19-fold. His average cost of acquisition per equity share was 56.54 a share for 119 crore. At the IPO upper band price, Munjal is sitting on a stake worth 2,413 crore.

Narotam Sekhsaria, who has invested around 19 crore in the firm at an average cost price of 9.86 a share, will see his stake value surge more than 11,443% to 1,944 crore. Sekhsaria first invested in 2014.

PE firm TPG Growth, which invested around 191 crore in 2019 at an average cost of 117.67 a share has seen its stake grow by 868% to 1,853 crore.

Harinder Singh Banga and Indra Banga were two of the earliest investors in Nykaa, having first invested 120 crore in 2014 at an average price of 56.54. The value of their stake has jumped 18-fold to 2,383 crore at the current IPO valuation.

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